Employee lottery pools are quite common in the workplace. Groups of people jointly purchase lottery tickets in hopes of winning and sharing the prize. Everyone wants in on the action as no one wants to be left out of the game should the group actually win. These groups are usually formed informally with no hard set rules. We all know the odds of winning are very small and luckily when it does happen, the collecting and sharing of the prize usually goes smoothly. However, once in awhile disputes as to who is entitled to a lottery share become problematic.
The courts have rarely dealt with employee lottery disputes. The following are some types of employee lottery disputes that have been before the courts:
Case | Issue | Facts | Result |
Taylor v. Smith, 1995 CanLII 7219 (ONSC) | Is employee group member entitled to a portion of a winning ticket when the ticket purchases were contrary to his understanding of the contribution? |
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Spiro v. Koc, 2016 ONCA 592 (CanLII) | Was an employee lottery contributor entitled to a share after leaving his employment? |
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Clancy v. Gough, 2011 ABQB 778 (CanLII) | Did group agree to contribute lottery pool monies for absent members? |
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Group lottery disputes can be avoided by entering into a clear written agreement which should include the following:
- Designating a Group Leader who is responsible for collecting money, having members sign the agreement, and purchasing lottery tickets in accordance with the terms of the agreement.
- Keeping a group-play form (available from OLG) for each lottery draw.
- Group members for each lottery draw
are determined by those on the group-play form that have:
- signed the form; and
- paid the contribution money in advance of the ticket purchase and by the cut-off time.
- Group-play form should
indicate:
- the cost per person; and
- the name of the lottery tickets being purchased and their draw dates.
- The cut-off time for joining the lottery pool.
- If the group-play wins free tickets in a draw, then the free tickets will be replayed in isolation immediately by the same group in the next draw as a separate group draw. This will be repeated if more free tickets are won. No new members may join this group.
- What threshold amount of lottery winning will be used towards a future lottery purchase.
- How prize winnings will be split as a team.
- Each lottery group-play form is a new agreement.
- There are no "regular groups" or "regular members".
- If a person is sick, on vacation, or otherwise absent and unavailable to sign the form or to contribute money, then that person is not a member of the group. There is no legal or moral obligation on the part of the Group Leader or other member to contribute on the absent person's behalf. However, any group member may sign the form and make contribution on behalf of a co-worker.
- Any disputes that may arise under the agreement or group play shall be resolved by a professional independent single arbitrator selected by the Group Leader and a simple majority of the lottery group members. The arbitrator's decision shall be final and will include who will be responsible for the arbitrator's costs.
- The group members have a duty of good faith to each other and will treat each other fairly and with respect.
- The Group Leader will:
- have complete discretion as to who may or may not be a member of any draw;
- manage the master lottery pool agreement to update for employees who have left the lottery pool and new employees who have joined;
- manage the group-play lists;
- purchase the lottery tickets;
- distribute copies of the tickets along with the group-play list prior to the draw;
- validate the lottery tickets after the draw and report the results to the group members as soon as reasonably possible and before the next draw; and
- will have no liability for his/her work as a Group Leader other than as stated in the agreement.
Wishing you good luck ...... hope you don't need it after you win!
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.